This paper develops a theory of framing in an intertemporal context with risky choices. We provide a unifying account of existing theories of focusing by allowing a decision maker to choose her frame such that her attention is either drawn to salient events associated with an option or to the...

In this paper we study the relationship between financial literacy and self-employment. We use established financial knowledge-based questions to measure financial literacy levels. The analysis shows a highly significant correlation between self-employment and financial literacy scores. To...

Can policymakers hire more effective teachers by increasing the relative economic benefits of teaching? We investigate this question by exploiting business cycle conditions at career start as a source of exogenous variation in the outside labor market opportunities of potential teachers. Using...

Using individual-level panel data from European Union Statistics on Income and Living Conditions (2007-2010) we explore to what extend wage differentials across European countries are explained by differences in education, actual experience and health. The human capital literature suggests an...

We assess the relevance of formal education on the productivity of the self-employed and distinguish between opportunity entrepreneurs, who voluntarily pursue a business opportunity, and necessity entrepreneurs, who lack alternative employment options. We expect differences in the returns to...

Political regimes influence the contents of education and the criteria used to select and evaluate students. We study the impact of a socialist education on the likelihood of obtaining a college degree, as well as on several labor market outcomes, by exploiting the reorganization of the school...

The new training literature suggests that in a monopsonistic market employers will not only pay for firm-specific training but also for general training if the risk of poaching is limited. This implies that training participation should decrease when competition for employees is higher among...

This paper examines the role of the sociocultural background of students as measured by both religious denomination and political attitudes towards gender equality and science-related issues in their home environment for choosing STEM fields in university. Our empirical estimates are based on a...

Policy debates about the balance of vocational and general education programs focus on the school-to-work transition. But with rapid technological change, gains in youth employment from vocational education may be offset by less adaptability and thus diminished employment later in life. To test...